Friday 24 September 2021

Why Costa Rica Has High Gasoline Prices

Paying the bills

Latest

Legislators to begin discussion on reducing the 2022 Marchamo this Monday

QCOSTARICA - The political fractions, except that of the...

No National Census in 2022!

QCOSTARICA - The Instituto Nacional de Estadística y Censos...

Seven drivers a day go to the Prosecutor’s Office for driving drunk

QCOSTARICA - Every day, seven drunk drivers are referred...

Costa Rica has the lowest inflation in the region

QCOSTARICA - Costa Rica registered the lowest inflation in...

11 benefits of e-learning

Whether you struggle to learn in a traditional educational...

Will Paul Chaplet ever fly the flag for Costa Rica on the PGA Tour?

Life comes at you fast when you’re a teen...

What Are the Best Costa Rican Players in the MX League?

The Primera División de México, better known as Liga...
Paying the bills

Share

QCOSTARICA – With world crude oil prices at the lowest in decades, why are Costa Rica´s prices at the pump so high? In the United States, in some areas prices are at us$2 per gallon and lower but Costa Ricans have yet to see any benefit.

combustibles-recopeLa Nacion asked this question and not only found out why but revealed that they can hope for little relief.

The country gets the best break on wholesale crude in the region — US$118.32 per barrel. This gives an encouraging starting price of  US$0.74 per liter, a much lesser quantify than a U.S. gallon. But from there it’s all down hill.

- Advertisement -

The reason is that this is just over half the price to the consumer. The catch is that the tax placed on the fuel is also the highest in the region. Thus, US$0.74 per liter is magically transformed into US$1.40 when it goes into your tank. (The price does fluctuate a little, dropping when the price of crude goes down, the only variable.

Panama pays the highest price for its crude, $124..02 per barrel, but also sells it a the lowest price in the region: $1.07 per liter. La Nacion found out that this country’s subsidies and taxes make the difference. (For the reporters to obtain this data, we have to thank Costa Rica’s transparency — in Nicaragua it’s a state secret.)

So let’s take a look at the taxes, which averaged US$0.45 per liter last year. It accounts for 2% of the Gross Domestic Product, about ¢390 billion colones. And, according to deputy Finance Minister Fernando Rodriguez, it’s vital.

“We can’t lower this tax without compensating for it in another area,” Rodriguez told the paper. But still another factor keeps the price at the pump high–Aresep, the public utilities watchdog agency, was given power in 2008 to manipulate the price to provide a subsidy to keep price down in other areas.

Monday, La Nacion disclosed that new beneficiaries of Costa Rican mobility are asphalt for the roads and LPG cooking gas users. Fortunately, this is only 1% of the retail prices of gas and diesel. But the high cost of the refinery itself is paid by drivers, about 5.4%, compared with 2% in other Central American countries.

RECOPE has announced a ¢6 billion colon cut in its expenses for this year. Luis Carlos Solera told La Nacion, “There are always opportunities to improve.” Amen to that, brother!

- Advertisement -

Article by iNews.co.cr

- Advertisement -
Paying the bills
Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Legislators to begin discussion on reducing the 2022 Marchamo this Monday

QCOSTARICA - The political fractions, except that of the Partido Acción...

No National Census in 2022!

QCOSTARICA - The Instituto Nacional de Estadística y Censos (INEC) -...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.